Why So Many People Fail At Forex Trading?

It's relatively easy to understand why most people lose money when they are trading Forex. When we see someone promoting this market, they always talk about the great advantages of the forex market but they never tell you that each one of these advantages can also get you in trouble. The fact that the Forex market is open 24 hours a day is an advantage because you can trade whenever you want but you don't have the volatility needed whenever you want; the Forex market has a high leverage (100, 200 or even 400x). If you have a mini account and use, for example, 100x margin, you can easily get your account ripped off with one single trade. Everyone says "Come trade Forex. There are a lot of free resources and it doesn't take you much time.". This is also a wrong idea about Forex.

If you want to succeed in the Forex market, you have to commit time, energy and money. Basically, you have to treat Forex trading like any other business. If you want to make some money in a coffee shop, you have to invest in a space, in the product you're selling, you'll have to see where you're going to open it, what money you need to ask the bank, and so on. Only after the opening of the coffee shop you can start taking your profits but never forget to keep investing to make it better than the competition. This basic example shows you exactly the mentality you need to have in order to be successful in the Forex market. First of all, you need to research about the market itself, read all that you can, invest some money in good resources, open a demo account with a broker and only then, if you're making money consistently, start trading a real account and make good profits. And, of course, always keep learning because things change all the time.

But why so many people fail at forex trading?

1 - Most people treat Forex as a get rich quick scheme.

2 - Most people expect to have great returns in a short period of time.

3 - Most people think it's easy to make money in Forex.

4 - Most forex traders believe they are better than other traders and the market.

5 - Most people think that is possible to make money in Forex with no work.

6 - Most people choose a bad broker.